Question

The estimated unit costs for a company to produce and sell a product at a level of 13,500 units per month are as follows:

Answer 1

Answer:

The correct answer is $79.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the estimated variable cost by using following formula:

Estimated variable cost = Direct material + Direct labor + Variable manufacturing  overhead + Variable selling  expenses

By putting the following value in the formula, we get

Estimated variable cost = $34 + $22 + $19 + $4

= $79

Hence, the estimated variable costs per unit is $79.